African Continent's Critical Minerals - Media: China and the U.S. Compete for Africa's Critical Minerals; U.S. 12 Billion Dollar Strategic Mineral Reserve Plan Offers New Opportunities to Africa
¬ The U.S. government is preparing a 12 billion dollar strategic reserve plan for rare earths and critical minerals
¬ This initiative aims to ease U.S.-China tensions and ensure the security of the U.S. industrial supply chain
¬ As the U.S. procurement strategy evolves, Africa may face changes in demand
The United States is intensifying efforts to secure key mineral supplies in order to reduce its reliance on supply chains dominated by China. According to international media reports on February 2, this 12 billion dollar "Project Vault" (Strategic Reserve Plan) may initiate the construction of strategic reserves for rare earths and other critical raw materials, marking a new phase in related work.
This project reflects Washington's growing concern about the vulnerability of mineral resources that are vital to national security and industrial competitiveness. It also raises questions about how global value chains may adjust, especially in Africa - a region that has become a core battleground for the competition over mineral resources between China and the United States.
Focusing on Domestic Industry Needs
Existing information indicates that Project Vault (Strategic Reserve Plan) mainly provides data input security guarantees for core industries such as the U.S. automotive and technology sectors. The plan aims to establish reserves equivalent to 60 days of consumption to address short-term supply disruptions.
The financing scheme will integrate private capital and debt financing, including up to 1 billion dollars in loans provided by the U.S. Export-Import Bank. Several commodity trading companies are expected to participate, including Swiss Mercuria Energy, which has expanded its business into the African critical minerals supply chain sector.
The scale of this initiative demonstrates the U.S. government's strategic intent to protect domestic industries from external shocks. Given that the U.S.-China trade conflict has not yet been resolved, establishing strategic reserve warehouses could effectively mitigate the impact of export restrictions and other measures - such as Beijing's previous restrictions on rare earth resources. However, its ability to cope with long-term supply disruptions remains questionable.
The Supply Side in Africa
The impact of the global critical mineral value chain is still taking shape. Africa is increasingly becoming a core area of competition between China and the United States, and the 'Vault Plan' may help the U.S. achieve diversification of supply sources, reducing dependence on China.
Considering the backgrounds of the parties involved, this point is particularly important. Robert Friedland, founder of Ivanhoe Mines, operates several large assets in Africa, including the Kamoa-Kakula copper mine in the Democratic Republic of Congo and the Platreef multi-metal project in South Africa. Mercuria is also expanding its presence across Africa, recently forming a trade joint venture with the Congolese state-owned mining company Gecamines, primarily supplying the U.S. market; additionally, it signed a copper mine acquisition agreement with Eurasian Resources Group's assets in the Democratic Republic of Congo in November 2025.
In this context, the implementation of the "Strategic Reserve Plan" (Project Vault) marks that Africa is no longer a new frontier in U.S. strategy, but rather an explicitly stated component in its strategy to ensure critical minerals are not subject to Chinese-led strategies. This trend intertwines with Africa's increasingly firm policy agenda, which prioritizes local processing, value addition, and stricter conditions for access to mineral resources.
In this context, the Project Vault project can not only enhance the commercial visibility and reduce the risks of some ongoing mining projects, but also verify whether the U.S. supply security goals align with Africa's strategy of deepening integration into the global value chain.
Source: ecofinagency
Original: toutiao.com/article/1856142449691849/
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